Finsbury Food Group saw profit before tax soar by 76% to £11.4m last year, it revealed this morning.
Unveiling its preliminary results for the year to 27 June, the company, which was named Bakery Manufacturer of the Year at the recent Baking Industry Awards, also saw revenue grow by 45.8% to £256.2m.
It said that last year’s acquisition of Fletchers had given it a broader spread of customers across food retail and foodservice channels in cake, bread and morning goods. It also acquired Johnstone’s Just Desserts in June.
Finsbury spent £7m in capital expenditure last year and said it would spend £11m over the next 12 months. It now employs 3,200 people and is establishing baking academies and setting up sustainability initiatives.
The group has an operating profit margin of 4.8% (2014: 4.4%). It said its net debt of £21.3m equated to 1x the pro forma annualised ebitda of the group – and was well within its long-term banking facility of £51m.
Acquisitions
John Duffy, chief executive of Finsbury Food Group, said: “The past year has truly been transformational. Building on our organic growth, the acquisitions in the period have diversified the group into new channels and widened our customer base. In concurrence, we have invested significantly in the business to ensure long-term competitiveness.
“With annualised turnover of close to £300m, Finsbury is a diverse bakery group with an ambition to increase shareholder value, identify acquisition opportunities and deliver further growth. Even in the value-conscious consumer markets we are operating in, our solid strategy and unwavering vision allow us to look forward to the year ahead with confidence.”
Chairman Peter Baker added: “Finsbury Foods has undergone a transformation. We have gone from being a relatively small group with challenges, affecting a turnaround of the core and emerging to become a group with an annualised turnover of close to £300m.
“And yet we still have aspirations and the capabilities to grow further. The economic and market environment remain challenging. Our customers are having to adjust their offering and formats and we must be responsive to these changes.
“While the last financial year offers cause for satisfaction, there is a dynamic environment at senior level, a restless desire to pursue our ambitions, to continue to grow organically and to seek out further opportunities.”
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